Dhanolty Developers Limited vs Securities And Exchange Board Of India

Tarun Agarwala, Presiding Officer

We have heard the learned counsel for the parties. On November 04, 2015 the Whole Time Member (“WTM” for convenience) of the Securities and Exchange Board of India (“SEBI” for convenience) passed an order holding that the scheme which the appellants were running was a Collective Investment Scheme (“CIS” for convenience) which was violative of the SEBI (Collective Investment Schemes) Regulations, 1999 (“CIS Regulations” for convenience) and accordingly a slew of directions were issued directing the appellant to refund the money to its investors etc. This order was challenged before this Tribunal wherein it was recorded that the appellants will implement the order dated November 04, 2015 and refund the amount. Accordingly, the appeal was disposed off by this Tribunal by an order of October 06, 2017 directing the appellant to make an appropriate representation indicating the amount of refund that they have made along with other details. Subsequently, a representation was filed and the WTM passed an order dated March 29, 2019 holding that compliance of the order dated November 04, 2015 was not made. This order of March 29, 2019 was challenged by the appellants before the Jharkhand High Court which was disposed off by an order October 15, 2019 directing SEBI to decide the recall application dated April 23, 2019. Based on the direction of the Jharkhand High Court the WTM again passed an order dated April 24, 2020 holding that certain compliances were required to be made by the appellants.

Based on the direction given in the order dated April 24, 2020 the appellant contends that advertisements were issued and a certificate of the Chartered Accountant was also given showing the repayments made by them to the investors. In this regard, we find from the perusal of the correspondence that the respondent had directed the appellants to file it in a prescribed format which the appellant did. Subsequently, the respondent informed the appellants that there were still some complaints made by investors regarding non-payment. It has also come on record through these correspondences that these complaints were also resolved and payments were made.

The appellant has now come up before this Tribunal indicating that inspite of all these correspondences showing that they have complied with each and every direction of the WTM as contained in the order of November 04, 2015 and April 24, 2020 no final orders are being passed and their bank accounts etc. still remains attached.

Considering the aforesaid and in the absence of any plausible reply been given by the respondent we dispose of the appeal directing the WTM or the responsible officer to pass an appropriate order on the application of the appellant within two weeks after giving an opportunity of hearing. In this regard, the appellant shall appear before the authorised personnel on June 12, 2023. The Misc. Application is disposed off accordingly.

This order will be digitally signed by the Private Secretary on behalf of the bench and all concerned parties are directed to act on the digitally signed copy of this order. Certified copy of this order is also available from the Registry on payment of usual charges.